Bamboo Equity Partners, a leading real estate manager and investor of office and industrial properties, announced today that its Bamboo Micro Opportunity Fund I, L.P. has acquired 10777 Sunset Office Dr., a medical office building in Sunset Hills, MO. The building is currently 91% occupied, with tenants including Mercy Hospitals, SSM and Sisters of St. Joseph. Immediately following the closing, Bamboo will renovate the 52,000 square-foot property to improve common areas used by patients and healthcare providers.
10777 Sunset Office Dr. is centrally located in between SSM Health Saint Louis University Hospital and St. Clare Hospital, as well as between St. Anthony’s and Mercy Medical Centers, some of the St. Louis area’s largest hospitals. The building enjoys easy access to Interstate 270 and Interstate 44, as well as visibility to both highways. Dan Dokovic, Bamboo CEO, “The South County submarket has exceptional demographics. Approximately 30 percent of the population within a one-mile radius of the property is 60 or older, which accounts for the highest per capita healthcare spending. We’re looking forward to providing the community with a comfortable and inviting medical space that they can get to quickly and easily.”
According to Bamboo’s Managing Director, Alice Benner, the property will undergo a significant renovation to fully modernize the building, which was built in 1978, and bring it up to Class-A standards. “Renovations will include aesthetic upgrades to the common areas including the lobby, hallways, and restrooms. Upgraded building systems such as HVAC and lighting will improve building efficiency.”
Identifying trends in the healthcare industry was a primary factor in Bamboo’s decision to acquire 10777 Sunset Office Dr. An analysis by Moody’s determined that, since 2009, medical office space investment has not risen commensurate with growth in healthcare employment. In addition, estimates by the US census suggest the population of US residents over the age of 65 will increase 105% between 2015-2060.
Bamboo Micro Opportunity Fund I, L.P. acquires under-valued properties great potential for growth. The micro-fund intends to invest $55-60 million by acquiring office and industrial buildings throughout the St. Louis Metro area. “If you invest with us, and we invest in St. Louis, we can increase the value of St. Louis as a place to live and work,” said Dokovic. “We want to see that ripple effect.”
Bamboo Equity Partners is a team of real estate professionals. With integrated staff and technology designed to reduce costs and maximize returns, Bamboo is positioned to acquire undervalued multi-tenant office, industrial and retail assets to improve their value in the marketplace. The return objective for Bamboo properties is a risk-adjusted return in the mid-teens to mid-twenties. Find out more at www.bambooequity.com
Bamboo Equity has retained Intelica CRE as the listing agent along with property management responsibilities.